Labor Dependence, Income Diversification, Rural Credit, and Technical Efficiency of Small-Holder Coffee Farms: A Case Study of Cu M'gar District, Dak Lak Province, Vietnam
Vietnam coffee sector plays a crucial role not only in the country’s economy but also in the global coffee market, and improving coffee production efficiency may benefit coffee producers. However, small-holder coffee farming households still encounter many difficulties regarding resources and socio-...
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University of Economics Ho Chi Minh City
2023
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oai:scholar.dlu.edu.vn:DLU123456789-1155112023-03-08T03:56:37Z Labor Dependence, Income Diversification, Rural Credit, and Technical Efficiency of Small-Holder Coffee Farms: A Case Study of Cu M'gar District, Dak Lak Province, Vietnam Ho, Quoc Thong Tuyet, Hoa Niekdam Vietnam coffee sector plays a crucial role not only in the country’s economy but also in the global coffee market, and improving coffee production efficiency may benefit coffee producers. However, small-holder coffee farming households still encounter many difficulties regarding resources and socio-economic conditions affecting coffee production efficiency. This study examines relationships among income diversification, rural credit loan, labor dependence, and technical efficiency in coffee production through a face-to-face survey with participation of 143 coffee farming households conducted in Cu M’gar District, Dak Lak Province, Vietnam. The stochastic frontier model shows that the mean of technical efficiency scores is 0.64, and it also verifies the existence of inefficiency variation. Both Maximum Likelihood Estimate (MLE) and Feasible Generalized Least Square (FGLS) consistently indicate that a higher level of diversity in income sources negatively affects coffee production efficiency. Additionally, independence in labor resource for coffee farming may help farmers increase technical efficiency of coffee production. Credit loan has a positive and statistically significant relationship with technical efficiency of coffee production. These relationships hold especially true for smallholder coffee farms with ethnic minority household heads. The policy options of credit loan access, intensive investment in coffee production rather than diversification of coffee farmers’ income sources, and independent management strategies for labor sources are suggested as an integrated approach to improve technical efficiency in coffee production of smallholder coffee farms. 2023-03-08T03:56:37Z 2023-03-08T03:56:37Z 2016 Article 2615-9112 http://jabes.ueh.edu.vn/Home/SearchArticle?article_Id=3d33b1b7-ac74-4ef0-9480-7964a96fa6df https://scholar.dlu.edu.vn/thuvienso/handle/DLU123456789/115511 10.24311/jabes/2016.23.4.04 en Journal of Asian Business and Economic Studies, Volume 23, Issue 04; p. 22-41 application/pdf University of Economics Ho Chi Minh City |
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Thư viện Trường Đại học Đà Lạt |
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Thư viện số |
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English |
description |
Vietnam coffee sector plays a crucial role not only in the country’s economy but also in the global coffee market, and improving coffee production efficiency may benefit coffee producers. However, small-holder coffee farming households still encounter many difficulties regarding resources and socio-economic conditions affecting coffee production efficiency. This study examines relationships among income diversification, rural credit loan, labor dependence, and technical efficiency in coffee production through a face-to-face survey with participation of 143 coffee farming households conducted in Cu M’gar District, Dak Lak Province, Vietnam. The stochastic frontier model shows that the mean of technical efficiency scores is 0.64, and it also verifies the existence of inefficiency variation. Both Maximum Likelihood Estimate (MLE) and Feasible Generalized Least Square (FGLS) consistently indicate that a higher level of diversity in income sources negatively affects coffee production efficiency. Additionally, independence in labor resource for coffee farming may help farmers increase technical efficiency of coffee production. Credit loan has a positive and statistically significant relationship with technical efficiency of coffee production. These relationships hold especially true for smallholder coffee farms with ethnic minority household heads. The policy options of credit loan access, intensive investment in coffee production rather than diversification of coffee farmers’ income sources, and independent management strategies for labor sources are suggested as an integrated approach to improve technical efficiency in coffee production of smallholder coffee farms. |
format |
Article |
author |
Ho, Quoc Thong Tuyet, Hoa Niekdam |
spellingShingle |
Ho, Quoc Thong Tuyet, Hoa Niekdam Labor Dependence, Income Diversification, Rural Credit, and Technical Efficiency of Small-Holder Coffee Farms: A Case Study of Cu M'gar District, Dak Lak Province, Vietnam |
author_facet |
Ho, Quoc Thong Tuyet, Hoa Niekdam |
author_sort |
Ho, Quoc Thong |
title |
Labor Dependence, Income Diversification, Rural Credit, and Technical Efficiency of Small-Holder Coffee Farms: A Case Study of Cu M'gar District, Dak Lak Province, Vietnam |
title_short |
Labor Dependence, Income Diversification, Rural Credit, and Technical Efficiency of Small-Holder Coffee Farms: A Case Study of Cu M'gar District, Dak Lak Province, Vietnam |
title_full |
Labor Dependence, Income Diversification, Rural Credit, and Technical Efficiency of Small-Holder Coffee Farms: A Case Study of Cu M'gar District, Dak Lak Province, Vietnam |
title_fullStr |
Labor Dependence, Income Diversification, Rural Credit, and Technical Efficiency of Small-Holder Coffee Farms: A Case Study of Cu M'gar District, Dak Lak Province, Vietnam |
title_full_unstemmed |
Labor Dependence, Income Diversification, Rural Credit, and Technical Efficiency of Small-Holder Coffee Farms: A Case Study of Cu M'gar District, Dak Lak Province, Vietnam |
title_sort |
labor dependence, income diversification, rural credit, and technical efficiency of small-holder coffee farms: a case study of cu m'gar district, dak lak province, vietnam |
publisher |
University of Economics Ho Chi Minh City |
publishDate |
2023 |
url |
http://jabes.ueh.edu.vn/Home/SearchArticle?article_Id=3d33b1b7-ac74-4ef0-9480-7964a96fa6df https://scholar.dlu.edu.vn/thuvienso/handle/DLU123456789/115511 |
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1819771006498111488 |